“Today we are here, but we do not know about tomorrow.” The truth behind this quote is that thinking about purchasing life insurance does not necessarily mean thinking about death; it is also thinking about the lives of those we love; for that reason, it would not be wrong to investigate which is the best insurance policy from now on.
One of the priorities of the human being is to protect himself and protect his family; it is a natural desire of any person especially when it is the support of a family nucleus.
Simultaneously, we are all exposed to natural risks. At any time, we can be part of an unwanted incident, be it health or a personal accident that costs us our lives.
Before this, it is necessary that we go knowing what are the characteristics of the best life insurance are. Moreover, for that, I will be giving you a hand in the following paragraphs. Do not miss.
Introduction to Life Insurance
It is the contract used to protect those who are left with the pain of having lost a loved one, who besides being their moral support, was also the breadwinner.
I understand that the loss of this loved one is not replaceable; but, the economic protection that this being provided us is; this protection is precisely achieved through life insurance.
If you have debts, car loans, dependents or mortgages; if you were the person who generates the most income for family support, then you do need a life insurance, because your dependents could suffer your physical absence in life. To deal with these cases, a life insurance policy could economically support at the unexpected moment of your demise.
The subscription age is usually between 18 and 65 years, although depending on the product or conditions and the insurance company, it extends up to 75 years.
How to choose life insurance?
Make sure that the company with which you will contract life insurance, has the authorization of the Superintendency of Banks and Insurance to operate in the life branch, one of the authorized offices.
Be very careful in case you want to look for international companies. Check that they are legally constituted and domiciled in the country. For this, you can see the website of IRDAI.
Key Features of Life Insurance You Must Consider Before Selecting One:
#1 The sum insured
It indexes the amount of money that your family or beneficiary(s) will receive if you were to be absent. It is vital that when establishing this amount in the insurance that you take into account:
- a) The number of people who depend on you and their ages.
- b) How much are the expenses of your house each month?
- c) In case someone studies or goes to do it, what is the amount of education expenses?
- d) Your monthly salary
With this, you will have an overview of the real and future expenses of your family or beneficiary(s), and you can be assured by an amount that guarantees that the standard of living of the same will not be impaired after your absence. Choose a sum insured according to your ability to pay.
#2 The price to be paid
It is the price of your insurance. The one that costs more is not always the best; it verifies the conditions and the additional benefits offered by each institution. Your cost (premium) depends on the sum insured, your age, gender, activities you perform, health insurance and other additional coverages contracted.
#3 What is covered
It is what your insurance does cover you. The main one is death. You can find additional ones such as disability, loss of job, funeral expenses, terminal illnesses, among others.
#4 The beneficiaries
Those who receive compensation. Pay particular attention when designating your beneficiaries:
- a) Write the full name clearly and precisely, specifying the percentage of the sum insured corresponding to each one (verify that the percentage totals 100%).
- b) Do not choose minors as beneficiaries.
- c) Do not designate beneficiaries to collect the insured amount and give it to another person, since their obligation will be only moral.
#5 The Claim process
It is essential that although we have not yet overcome the pain of the loss and perhaps while we are still going through the main phases of mourning, we can dedicate a part of our attention to putting in order the life insurance that the deceased had. The difference between working directly with an insurer and trusting a broker to provide us with all their support in the process is demonstrated here.
As we can see, there are as many insurance variants to be considered as we can imagine, so it is essential to read the scope of the policy correctly and understand each of its points. It helps to get a life insurance policy that fits your budget.